Confusing statistics: 495,684 houses sold in twelve months

Statistics released from theMinistryofHousinghave always been in the spotlight because they confusebuyers,property investors,andtendtobeuselessformarketers.

The best example is the latest data release: in the last 12 months the Spanish market has counted a total 495,684 transactions. It sounds like nearly half a million properties were sold.

At this pace, the country would reach 600,000 transactions by the end of the year and in two years’ time the demand would be equal to the number of offers -no more problems.

But unfortunately it is not that easy and not as good as it sounds. The figure of 495,684 transactions includes repossessedpropertiesandhouses that go from developer’s portfolios to banks. Also, it includes properties transferred from banks to their affiliate state agents.

In order to have an accurate index of property purchases, an expert from Bankinter recommends using only the transactions that are affected by newly built properties as a point of reference. That way, the number of propertypurchaseswouldbebetween55,000and60,000units quarterly, according to the national newspaper El Mundo.

Foreigners’ property investment in Spain

It deserves to be mentioned that transactions done by foreigners who are residents of Spain totaled 8,765duringthelast12monthperiod, which means an increase of 31.8% compared to the previous 12 months. Also, it means that foreigners‘purchasesrepresent6.2%of the total transactions.

CONCLUSIONS:

1) There are not reliable official figures about the Spanish property market. Spain needs to find the right methodology for statistics according to the new market framework.

2) Despite the fact that 495,684 is not the number of units sold out to the final buyer, such an amount of transactions indicates that the market is quite alive. A lot is going on in Spain.

If you were in Spain this time last year and in business you will know there is a definate upturn at present. How long this lasts remains to be seen but we arrange mortgages and enquiries have doubled since last year.